Musharakah Financing Facilities for Property Development Project in Jakarta, Indonesia

Musharakah Financing Facilities for Property Development Project in Jakarta, Indonesia

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The bank is a business entity which builds it funds from the community in the form of savings and channelling them to the community in the form of credit or loan to improve the standard of living of many people. Along the economic growth after the credit is being implemented, from time to time the bank will face the credit risk. There are many ways to minimize the credit risk. The one way is to perform client analysis of 5C (character, capacity, capital, condition of economy and collateral).
Given credit to a debtor must meet the requirements of the principle known as 5C, the five principles are:
a) Character
The character is data on the personality of the prospective customers as personal traits, habits, ways of life, circumstances and family background and also hobbies. Usefulness of the proficiency level assessment to determine the extent to which faith / willingness prospective borrowers to meet their obligation (willingness to pay) in accordance with the promise that has been set.
The extension of credit on the basis of trust, while underlying belief, namely the belief of the banks that borrowers have a moral, character and personal traits are positive and cooperative. Besides, it has a responsibility, both in private life as a human, as a life member of the community, as well as in business. Character is the domin...


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... be obliged with the contract stated that the capital provided by ASB will be based on Musharakah project and will be used for developing property as mentioned in contract and not for other purpose.
IV. Due to the company experience in running the project, KBL has responsibility to every aspect of operation until the project is finished. The bank (ASB) can appoint board of representatives to monitor and evaluate the progress of the project and also the financing.
V. The profit from this project will be shared by both parties which is 40% to the bank (ASB) and 60% to KBL as agreed term in the Musharakah contract.
VI. The losses from this project will be bear by both parties based on capital contribution from the beginning. But if any losses are caused by any negligence by one party, the negligent party should responsible to all the losses incurred in the project.



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